Operator: Good day ladies and gentlemen, and welcome to the Fiscal Third Quarter 2010 Franklin Covey Company Conference Call. My name is Sally, and I’ll be your operator for today.

At this time, all participants are in listen-only mode. Later we will be conduct a question and answer session. As a reminder, this conference is being recorded for replay purposes. I’d now like to turn the conference over to your host for today, Derek Hatch, Corporate Controller. Please proceed sir.

Derek Hatch - Corporate Controller: Good afternoon everyone. Welcome to our earnings call for the third quarter of fiscal 2010. Before we get started, I’d like to remind everybody this afternoon that this presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

Forward-looking statements are based upon management’s current expectations and are subject to various risks and uncertainties, including, but not limited to the ability of the company to stabilize and grow revenues. I’d also like to add, expectations surrounding the recognition of revenue in future periods, the ability of the company to hire productive sales professionals, general economic conditions, competition in the Company’s targeted marketplace, market acceptance of new products or services and marketing strategies, changes in the Company’s market share, changes in the size of the overall market for the Company’s products, changes in the training and spending policies of the Company’s clients and other factors identified and discussed in the Company’s most recent Annual Report on Form 10-K and other periodic reports filed with the Securities & Exchange Commission.

Many of these conditions are beyond our control or influence, any one of which may cause future results to differ materially from the Company’s current expectations, and there can be no assurance that the Company’s actual performance will meet management’s expectations.

These forward-looking statements are based upon management’s current expectations and we undertake no obligation to update or revise these forward-looking statements to reflect events or circumstances after the date of today’s presentation.

With that said, I’d like to turn the time over this afternoon to Bob Whitman, our Chairman and Chief Executive Officer. Mr. Whitman?

Robert A. Whitman - Chairman and CEO: Thanks, Derek. We’re glad to have the chance to talk to everybody this afternoon. Let me start out and just make one statement that we know that the results for the quarter were somewhat lower than what the analyst estimates had been and we’re going to talk about some of the reasons why we think that may have been the case in just a minute. But to (indiscernible) maybe than we were actually very excited -- in light of that, we are very excited about the trends that we saw in the business this quarter and we actually view it as a fundamentally very strong quarter where each of the key bets for us were on track and where our revenue generating capability actually was really well in excess of what we would have anticipated in terms of what we were able to put on the books.

Transcript Call Date 07/01/2010

Operator: Joe Janssen, Barrington Research.

Joseph Janssen - Barrington Research: I just wanted to get some more color on the pipes since I think that’s like the big story here. You mentioned the large contracts, $15 million, are you seeing more contracts of that size in the RFP process that you are currently bidding on?

Robert A. Whitman - Chairman and CEO: I’m glad you raised the question. Let me just articulate, this $15 million increase in the pipeline of booked days and contractual revenues is made up of three basic components. About $4.5 million of that $15 million relates to the increased bookings, on-site bookings to which David referred that occurred in the third quarter and that have occurred thus far in June – well, this is as of the end of the third quarter, so about $4.5 million relates to that. About $8 million of it relates to a large governmental contract. We think there is upside on the size of that contract actually, and we think that actually against that contract in the fourth quarter alone, we will invoice between $3.5 million and $4 million. It’s a one-year contract. And so, we think the potential is for to be substantially bigger – that’s $8 million. And the rest is made up of several large for us contracts, but much smaller than this governmental entity, primarily in our execution business and in others. So I’ll now go ahead and answer your – pose your question, I just wanted to make sure that you were clear that it’s not a $15 million contract per se, but it’s a series of contracts and booked days that add up to the increase in $15 million of what we have on the books to be delivered in future quarters. Was that helpful at all?

Joseph Janssen - Barrington Research: Yes, that does. Are you seeing – regardless of size overall, are businesses starting to increase their training spend, are you seeing more RFP processes?

Robert A. Whitman - Chairman and CEO: Let me ask David and Stephan to respond to that, and then I’ll add any color to come through if there’s anything else to say.

David Covey - Co-COO, Global Operations: I would say that the leading indicator we look at is booked days. They book for the future. So typically these days will be booked and most of them will be delivered in three months, some of those are out for six months. But as I said, we’re up 70% for the year, we were up 54% for the third quarter and we were down 5% last year. So that’s really the leading indicator. We started off the quarter at negative 12, I mean the first quarter, the second quarter we’re positive five and then a positive 54. So we really have seen in the last three months, our bookings increased dramatically. Clients were seen to be spending more, opening up their pocket books a little bit more. We’re hesitant to say that we’ve out of the woods entirely, but we definitely have seen an increase in training dollars being spent.

Joseph Janssen - Barrington Research: What about conversion rates?

David Covey - Co-COO, Global Operations: I would say higher on conversion rates too. Yes, I think I mentioned six, 12 months ago, a lot of business meetings that we had were meetings where we would talk about our product and service and give proposals and so forth and they would say, hey, this is great that why don’t you come back and talk again. And we kept saying, well, are we going to get any business, and we weren’t. They were just kind of stringing us out a little bit in terms of the timing. And now, we’re seeing the timing back to where it was in fiscal ‘08 where clients are booking things for one, two months, three months out and the cycle, the timeframe is not as long as we’ve seen in, say last year, last fiscal year.